Running a Business Means Taking on Risk — But Also Planning for the Unexpected
While you focus on growing your company, one powerful tool often gets overlooked: life insurance. Whether you’re a solo entrepreneur or manage a growing team, business life insurance protects what you’ve built, supports your succession plan, and strengthens your financial foundation.
1. Key Person Insurance
What happens if your top producer, co-founder, or YOU pass away unexpectedly? Key person insurance is a policy owned by the business that insures a critical employee or owner. If that person dies, the business receives the death benefit to:
- Cover loss of revenue
- Recruit and train a replacement
- Keep operations running
- Maintain business credit and confidence
It’s peace of mind for your staff, clients, and future.
2. Buy-Sell Agreement Funding
If you co-own your business, what happens if one partner passes away? A Buy-Sell Agreement outlines what happens to that partner’s share — and life insurance is the tool that funds it.
Here’s How It Works:
- Each partner is insured for their share of the company.
- If one dies, the policy pays out to buy their equity from the estate.
- The surviving owner(s) retain full control.
- The deceased owner’s family receives fair compensation.
No messy negotiations. No surprise partners. Just a clean transition.
3. Executive Bonus Plans (Section 162)
Want to retain top talent? Use permanent life insurance as part of an executive compensation package.
With a Section 162 Executive Bonus Plan, the business:
- Pays premiums on a life insurance policy for a key employee.
- The policy builds cash value they can use later (e.g., retirement).
- The employee owns the policy and receives the death benefit.
It’s a win-win: A benefit that feels like a bonus but builds long-term loyalty.
Who Needs Business Life Insurance?
- Business owners with partners or investors
- Entrepreneurs who are key to daily operations
- Companies with high-value executives
- Family-owned businesses planning a legacy
- Startups securing funding and credit
Final Thoughts
Your business is one of your greatest assets. Life insurance helps you protect it from the unexpected, prepare for succession, and reward the people who drive your success.
Don’t leave your company — or your family — exposed to risk.
Let’s Talk About Your Business Strategy
- Call: 847.920.6265
- Email: Andres@Lifelyinsure.com
- Office: 1345 Wiley Rd, Suite 113, Schaumburg, IL 60173
Schedule a confidential consultation — no pressure, just smart planning.
